Spain will shortly use ‘blockchain’ approach to register properties for Holiday Rentals
There is a new service launched by The Association of Registrars of Spain (CRE) to register properties for holiday rentals.
The structure of the service is based on a ‘blockchain‘ approach and the actual platform is called REGTURI.
With this new system the authorities can identify which properties are legally available for Holiday rental.
It also offers the ability to organize and connect the various agencies responsible for ensuring the proper functioning of the Spanish tourism industry.
The objective of the REGTURI program is to reduce the risk of fraud in the Holiday rental and intermediaries sector.
According to complaints processed by the Association of Registrars, there shows a lot of irregularities in Spain when renting a holiday home.
There were many cases of properties being sold, but also rented out as holiday lets illegally so creating issues in the process.
The existing process had too many loopholes in it so the new process using the ‘blockchain’ approach will hopefully close these holes.
So how does Blockchain work?
REGTURI is a rental certification and registration service that can be used to transmit documents between different departments.
Registrars validate a home for tourist use, based on the property registry and its rating.
They will take into account all the data of the property, the status of the owner and the regional regulations.
The REGTURI platform then generates an “object code” for the house, apartment or premises that is validated and registered.
This means that the property is registered in the government ‘blockchain’ as suitable for Holiday Rental.
Also, when the owner sells the property, a block with all the data is generated to update the ‘blockchain’.
Spanish sources say that approximately 1,100 registration offices in Spain could have access to the platform to verify the accuracy of the properties.
Similarly, REGTURI system could take in to account the operation of platforms such as Airbnb, which has gained popularity in Europe in recent years.
The Registrar’s Association has been working on this platform since 2008 and it incorporates hi-tech artificial intelligence.
Although this sounds very futuristic they have made it very clear that it will not replace the human element of the chain like Lawyers.
Property Law is still a complicated process and requires human interpretation to ensure the right decisions are made.
If you have any questions or need advice on properties, please contact us.